Ferrari investors seeks assurance on targets and SUV strategies

Ferrari’s new boss has his work cut out on Tuesday to make investors realize that the supercar maker can hit mid-term targets he discussed last month as “aspirational”.

The company’s share cost slid over 8 percent on August 1 after Louis Camilleri stated he observed “risks” ahead, with investors concerned if he may have sought to lower expectations on the targets set by his predecessor, Sergio Marchionne.

Camilleri was selected as Ferrari CEO in July, succeeding auto industry grandee Marchionne, who died after suffering complications following surgery.

The sudden change jolted investors who had expected Marchionne to stay as CEO and chairman until 2021, having over doubled Ferrari’s value since taking it public in 2015 and pledged to twice core revenues (EBITDA) to 2 billion euros ($2.3 billion) by 2022.

It also left Camilleri to complete scripting a strategy to show how the company known for its racing pedigree and roaring combustion engines would move toward making a sport utility vehicle (SUV) and hybrid cars while boosting deliveries without sacrificing its exclusivity.

“Investors want to know whether Ferrari confirm the 2 billion euro figure, which was already viewed as ambitious and now somewhat put in question by the new CEO,” stated Emanuele Vizzini, general manager at Milan-based investment fund Investitori Sgr. “And how they plan to expand the portfolio, including an SUV.”

When Camilleri deals with investors at Ferrari’s Maranello headquarters on Tuesday he is not anticipated to stray far from his predecessor’s script.

Marchionne took part in Ferrari’s spin-off from parent Fiat Chrysler, positioned it as a luxury icon instead of an automaker and managed to do what few thought possible: sail through a self-imposed cap of 7,000 cars annually without sacrificing pricing power or its exclusive appeal.

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